A deal to rescue The Weinstein Company from bankruptcy has collapsed at the last minute after it was found the firm’s debt was $65million higher than the $225m previously disclosed.
An investor group, led by Maria Contreras-Sweet, was poised to buy the struggling film production and distribution company and signed onto the confirmatory diligence phase. At that time they received the new information which has effectively scuttled the agreement.
Ms Contreras-Sweet now says: “We will consider acquiring assets that may become available in the event of bankruptcy proceedings, as well as other opportunities that may become available in the entertainment industry.” The Weinstein Company will now reportedly move quickly into 363 bankruptcy, likely by next week, with bidders beginning meetings this week for the assets to be sold off.
The Weinstein Company was co-founded by disgraced US movie mogul Harvey Weinstein who is facing dozens of allegations of sexual abuse, including rape, though he denies non-consensual sex.